Learning between Systems: Adapting Higher Education Financing Methods to Early Care and Education. Research Report.

Vast, Teresa

Noting that a coherent financing system is critical to ensuring that investments in early care and education are effectively cultivated and allocated, and that there are a number of parallels between early care and education and higher education, this project examined the financial support strategies in higher education and their potential use in early care and education. The areas of inquiry were: (1) financial aid need analysis; (2) financial aid packaging and administration, including a model for community-based financial aid administration; (3) use of diverse forms of financial aid, including family loan programs; (4) use of diverse sources of revenue, focusing on the feasibility of using community early care and education endowment funds; and (5) approaches to institutional (program) support and pricing. Following an executive summary, the report examines the current situation in early care and education service delivery and then considers each of the above areas. The report concludes with a summary of the key features of the proposed early care and education financial aid system. Recommendations are made with regard to: (1) the financial aid system; (2) resource and referral; (3) fund development and distribution; (4) licensing and accreditation standards; (5) professional development; (6) data system; and (7) funding. Appended to the report is a list of project participants. (Contains 22 endnotes.) (KB)